Scenario: Transaction involving a consumer or recipient who is different than the paying customer

Dec 13, 2016

Subsequent to the release of Information Notice Corporation Taxes 2014-02 providing guidance on sales of services, PICPA and other organizations provided feedback to the Department pointing out issues of concern with implementing various aspects of the guidance. These issues include the difficulty of determining the location of delivery, particularly where transactions involve a consumer/recipient who is different than the paying customer.

Other states have provided a cascading approach which sequentially looks to various facts, business records and types of documentation in order to identify an approach that is reasonable, reliable and practical to apply in the taxpayer’s given business environment. The Department has previously indicated that issue and others were being considered and that it intended to move ahead with a regulatory project. Is this still the case? What is the status of the regulatory proposal? In the interim does the Department intend to put out additional supplemental guidance?


The Department is still working on this is.  We will keep the professional organizations informed of the progress.
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